Australian Dollar (AUD) Curtailed by Dovish RBA Speech
Yesterday, the Australian Dollar (AUD) struggled amid uninspiring comments from Reserve Bank of Australia (RBA) Assistant Governor Christoper Kent.
In a speech, Kent stated that the full effects of the RBA’s tightening were still filtering through. While he additionally gestured at possible future hikes, the overall tone ran dovish, capping AUD rates.
This morning, Australia’s latest consumer inflation expectations data is set to print. Could an ongoing decline dent AUD?
New Zealand Dollar (NZD) Wavers amid Sombre Market Atmosphere
The risk-sensitive New Zealand Dollar (NZD) endured mixed trade on Wednesday, amid a dour market mood.
Additionally, the continuing dearth of impactful releases served to further undermine the ‘Kiwi’ during the day.
Over today’s session, the ‘Kiwi’ may lack direction as data remains in short supply.
Pound (GBP) Recovers amid Renewed BoE Rate Hike Bets
At the start of yesterday’s session, the Pound (GBP) wavered as concerns over the UK’s economic outlook continued to mount.
However, over the European session, Sterling managed to gain ground against most peers. Investors began to bet on further rate hikes from the Bank of England (BoE), bringing tailwinds.
This afternoon, the Pound could gather strength if August’s GDP data shows a 0.2% expansion as forecast.
Euro (EUR) Rises amid Hawkish ECB Comments
The Euro (EUR) managed to gain ground against some peers yesterday, amid hawkish remarks from European Central Bank (ECB) policymakers.
ECB Governing Council Member Klaas Knot indicated that the bank was open to further tightening if needed. However, EUR’s gains may have been limited by a lack of wider data impetus.
The common currency may face selling pressure later, if the ECB meeting minutes strike a dovish tone.
US Dollar (USD) Unmoved by Hotter-than-Forecast PPI
Red-hot producer price index data failed to support the US Dollar (USD) yesterday, as investors remained unconvinced of further policy tightening from the Federal Reserve.
Due to recent dovish remarks from Fed officials, investors anticipate that the bank will hold interest rates at the current level. With this in mind, USD was unable to capitalise on the strong PPI release.
The ‘Greenback’ may see volatile trade today, as investors pore over the latest Fed meeting minutes. Furthermore, tonight’s inflation release may bring further volatility if it cools as expected.
Canadian Dollar (CAD) Undermined by Falling Oil Prices
The crude-linked Canadian Dollar (CAD) wobbled through Wednesday’s session, as oil prices continued to retreat.
Due to a lack of economic releases, oil prices may be the main driver of movement for the ‘Loonie’ today.
Data Releases
Oct 12th 10:00 AUD Consumer Inflation Expectations (Oct) 4.4%
Oct 12th 16:00 GBP GDP (Aug) 0.2%
Oct 12th 21:30 EUR ECB Monetary Policy Meeting Accounts
Oct 12th 22:30 USD Inflation Rate (Sep) 3.6%
Oct 12th 22:30 USD Initial Jobless Claims (30/Sep) 210,000